ENVIRONMENTAL, social and governance (ESG) bonds tied to debt swaps arranged by Credit Suisse and Bank of America Corp (BofA) are being reclassified by the fund managers buying them, in a move they say is needed to protect their investment clients from mislabelling.
The ESG debt in question – known as blue bonds – was offered by the two banks in connection with debt-for-nature swaps. The bonds’ proceeds were used to help governments refinance existing obligations, in exchange for marine conservation commitments.
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